Cooperative Infrastructures for Small Water Systems: A Case Study

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Abstract

This case study analyzes the opportunities and potential for a cooperative structure in rural small water systems (SWS) located in Carroll County, Virginia. It is hypothesized that, by organizing as a cooperative, SWS in Virginia can obtain operational efficiency and meet the National Primary Drinking Water Standards (NPDWS) through economies of scale. Specifically, the research involves a market analysis of the factors which influence costs, operational efficiency, revenue, the exchange of technical information, operational capacities, and, thereby, the number of NPDWS violations in those participating SWS. The results of this research reveal ways in which a cooperative structure could result in efficiency and compliance gains. Results are used to develop guidelines for a conceptual cooperative structure that can be applied to SWS across rural Virginia and perhaps may have application on a broader economic and geographic scale.